SFHA Vs Non SFHA - Special Flood Hazard Area

[Adrian Castillo]

Special Flood Hazard Area, had a client look at a property within flood zone AE in Tampa. I was very surprised, by what FEMA requires, if you exceed a rehab budget over 50% of the assessed value. Has anyone experienced this process?

[Sarah Kassem]

It's called the 50% Rule. If your rehab is more than 50% of the assessed value, you need to raise the property to above the Base Flood Elevation. Here is a good summary.

[Michael Haynes]

Hello Adrian Costillo in Brandon. I remember that when you had a House with 50% Fire Damage that Code Enforcement would require it to be torn down. I sold my four Commercial lots three years ago, just off of Dale Mabry Hwy South and the requirement was to build 18 inches above the middle of the street. If we ever get a direct hit from a Hurricane in Tampa, All the properties South of Kennedy Blvd. will be under water. The idea is to raise all new construction above the street height which makes the Steets the new Storm drains. South of Kennedy Blvd. the peninsula is only 3 feet above Mean High Water level. The worst case scenario is to have a Hurricane come through the Yucatan Straights and head for the mouth of Tampa Bay on a high tide. Downtown Tampa will be 20 feet underwater. The last Hurricane to make a direct hit on Tampa was 1921 when all we had there were orange groves and cattle rances. The State now requires everyone in Florida to have Flood and Home Owner's Insurance which raises the Cost to own property and makes lots of it Money Losers. Hurricane Ian wiped out everything from the beach, inland in Ft. Myers. The Federal Flood Insurance says it was Wind Damage. The Home Owner's Insurance says it was Water Damage and neither is paying anything. So, downtown Ft. Myers is all boarded up and abandoned with extra Police patrols and shootings and robberies. That is why I took my money from the sale of my Commercial lots and paid Cash for a 3/3 Townhome with  garage and small pool in a 17 Unit Community on top of the hill behind Walmart and Home Depot. I'm on the North side of Hwy 60, the good side in Valrico, with no trees to fall on the buildings, at the Watershed point for guaranteed drainage. I get away from the mess in Tampa and it's quiet and safe. I paid $175,000 three years ago and it doubled in value the first year. Right now property values are comming down, but, I still have $100,000 Profit if I Sell. You won't see that again in your lifetime. 

[Doug Smith]

Quote from @Adrian Castillo:

Special Flood Hazard Area, had a client look at a property within flood zone AE in Tampa. I was very surprised, by what FEMA requires, if you exceed a rehab budget over 50% of the assessed value. Has anyone experienced this process?

Yep...the FEMA 50% Rule. I'm also in East Hillsborough...howdy neighbor. Is the property in Hillsborough County? Head to the property appraiser site (hcpafl.org) and pull up the assessed value for the STRUCTURE ALONE. That is what they use to determine the 50%...not the appraised value of the total property...only the structure. It can really bite you in the behind. If you can't renovate it for 50% of the tax-assessed structure value or less, then they will require you to tear it down and build to current code. Before others start piling in about the value used, that is how the Hillsborough County and City of Tampa officials gauge the property structure's value for calculating the 50% rule. I've done rehabs and dealt with them...trust me I know. Let me know if you have any other questions. Doug

[Adrian Castillo]

Quote from @Doug Smith:

Quote from @Adrian Castillo:

Special Flood Hazard Area, had a client look at a property within flood zone AE in Tampa. I was very surprised, by what FEMA requires, if you exceed a rehab budget over 50% of the assessed value. Has anyone experienced this process?

Thanks

Yep...the FEMA 50% Rule. I'm also in East Hillsborough...howdy neighbor. Is the property in Hillsborough County? Head to the property appraiser site (hcpafl.org) and pull up the assessed value for the STRUCTURE ALONE. That is what they use to determine the 50%...not the appraised value of the total property...only the structure. It can really bite you in the behind. If you can't renovate it for 50% of the tax-assessed structure value or less, then they will require you to tear it down and build to current code. Before others start piling in about the value used, that is how the Hillsborough County and City of Tampa officials gauge the property structure's value for calculating the 50% rule. I've done rehabs and dealt with them...trust me I know. Let me know if you have any other questions. Doug

Thanks, for confirming, that good old saying... it is, what it is!